Mercantilism

Mercantilism is defined as “policies aimed at guaranteeing prosperity by making a nation as economically self-sufficient as possible by eliminating dependence on foreign suppliers, damaging foreign competitors’ commercial interests, and increasing its net stock of gold and silver by selling more abroad than buying.”

It affected American colonies first by limiting all imperial trade to the British-owned ships with crews that were at least two-thirds British, where slaves and colonists counted as Brits. This made Britain Europe’s foremost shipping nation, and was the start of the American ship building industry.

Second, the policies barred the export of “enumerated goods” such as tobacco, rice, furs, indigo and naval stores to foreign nations, unless the items passed first through England or Scotland.

Third, the policies encouraged economic diversification, and fourth they made colonies a protected market for low-priced consumer goods and other exports from Britain.